U.S. Mortgage Rates Hit 50-Year Low (Bloomberg) By Prashant Gopal - Aug 18, 2011 U.S. mortgage rates fell to the lowest in more than half a century as concern that the global economic recovery is faltering spurred demand for bonds that guide home loans, according to Freddie Mac. The average rate for a 30-year fixed loan dropped to 4.15 percent in the week ended today from 4.32 percent, the McLean,... [more]
U.S. Mortgage Rates Hit 50-Year Low (Bloomberg)
By Prashant Gopal - Aug 18, 2011 U.S. mortgage rates fell to the lowest in more than half a century as concern that the global economic recovery is faltering spurred demand for bonds that guide home loans, according to Freddie Mac.
The average rate for a 30-year fixed loan dropped to 4.15 percent in the week ended today from 4.32 percent, the McLean, Virginia-based mortgage financier said in a statement today. That was the lowest in more than 50 years, Freddie Mac said. The average 15-year rate fell to 3.36 percent from 3.5 percent.
The decline followed a slide in yields for 10-year Treasury notes, a benchmark for consumer debt including mortgages. The yield touched a record low today of 1.9735 percent, after Morgan Stanley cut its forecast for global growth and concern grew that Europe’s debt crisis may deepen. Lower mortgage rates have done little to boost home demand as the housing market stagnates.
“Low interest rates are helpful at the margins but it’s indicating a lot of concerns about the economy,” said Scott Brown, chief economist for Raymond James & Associates Inc. in St. Petersburg, Florida. “The move into Treasuries is driven by fear.”
Housing demand is depressed as the U.S. unemployment rate sticks above 9 percent and lenders tighten standards. Sales of previously owned homes unexpectedly dropped in July, according to a report today by the National Association of Realtors. Purchases fell 3.5 percent to a 4.67 million annual pace, the weakest since November. The median forecast of economists surveyed by Bloomberg News called for an increase in sales.
Weak Demand
“The low rates are doing absolutely nothing to stimulate the market for existing homes,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. “It’s a combination of tight credit and weak demand coming from uncertainty and housing prices falling.”
Freddie Mac records dating back to 1971 show the previous low for a 30-year fixed mortgage was 4.17 percent in November. Data from the Bureau of Economic Research measuring Federal Housing Administration loans indicate that long-term borrowing costs are the lowest since the 1950s, said Chad Wandler, a spokesman for Freddie Mac.
The lower mortgage rates are helping to boost refinancing as homeowners seek to lower their monthly payments, Frank Nothaft, Freddie Mac chief economist, said in the statement.
A Mortgage Bankers Association index of refinancing jumped 8 percent in the week ended Aug. 12, the Washington-based trade group said yesterday. The share of applicants seeking to refinance climbed to almost 79 percent, the largest since November. The group’s purchasing gauge declined 9.1 percent to the lowest level in a year.
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Response by Riversider
over 14 years ago
Posts: 13572
Member since: Apr 2009
Except the vast majority of existing borrowers don't qualify for a refi
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Response by West34
over 14 years ago
Posts: 1040
Member since: Mar 2009
Rates down, inflation up, stocks bouncing down.... interesting times
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Response by ab_11218
over 14 years ago
Posts: 2017
Member since: May 2009
buy now or be priced out forever ;)
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Response by w67thstreet
over 14 years ago
Posts: 9003
Member since: Dec 2008
hilarious.... the mkt is just coming to terms of the structural nature of our RE bubble...
Took 20 yrs to get us here, ain't over in 3 years... sorry no way no how.
50% off baby.... $500psf. FLMAOZzzzzzzzzz
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Response by 875gator
over 14 years ago
Posts: 193
Member since: Sep 2010
"buy now or be priced out forever" Never heard that one before. Great comment.
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Response by West34
over 14 years ago
Posts: 1040
Member since: Mar 2009
The 4% mortgage rate is a tiny desperate little thumb in an enormous overflowing housing bubble dike.
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Response by jason10006
over 14 years ago
Posts: 5257
Member since: Jan 2009
"inflation up"
Bullshit.
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Response by Socialist
over 14 years ago
Posts: 2261
Member since: Feb 2010
I'm re-financing this week. I got 4.5%, 30 year fixed, no closing costs or points. Can anyone beat this?
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Response by Socialist
over 14 years ago
Posts: 2261
Member since: Feb 2010
"Except the vast majority of existing borrowers don't qualify for a refi"
I actually got a letter from Chase a few months ago telling me I qualified for a refi at a lower rate. My old mortage was with Chase. I never even asked them to do a refi. They just sent the letter on their own and paid all closing costs. I heard a lot of other banks are doing this as well.
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Response by johnny5alive
over 14 years ago
Posts: 6
Member since: Oct 2006
No closing costs? You mean no origination fee, but still pay title, and all the other 3rd party costs right? i'm shopping for a refine right now
lots of ppl buying little thumbs.... nice nice.....
streetsmart.... why don't you take some money out of YOUR home and buy some more RE. RE-fi now or have no more equity to ever re-fi AGAIN!!!!!!
or you can do plan 2.
Sell NOW and buy back w/o a Mortgage in 12 months.
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Response by huntersburg
over 14 years ago
Posts: 11329
Member since: Nov 2010
Amazing! Watch an ape time the real estate market!
Step 1 sell today
Step 2 buy in 12 months.
So simple, even an ape can do it.
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Response by 875gator
over 14 years ago
Posts: 193
Member since: Sep 2010
I would think you could get 4.25% in this environment and that is without points.
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Response by falcogold1
over 14 years ago
Posts: 4159
Member since: Sep 2008
Do you feel the wind?
that's the properties flying off the shelf.
so if 4.5% wont get you to buy...what will?
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Response by Socialist
over 14 years ago
Posts: 2261
Member since: Feb 2010
No cash out.
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Response by NYCMatt
over 14 years ago
Posts: 7523
Member since: May 2009
"I'm re-financing this week. I got 4.5%, 30 year fixed, no closing costs or points. Can anyone beat this?"
3.3, 30-year fixed, no points, no closing costs.
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Response by coloradorealty
over 14 years ago
Posts: 1
Member since: Aug 2011
Let these rates be available to ALL homeowners now, no pre-qualifications, minimal paperwork, NO points. Pass a law now! The banks will still make a profit, their rates are even lower.
This would help the American people tremendously!!!
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Response by empirestaterealty
over 14 years ago
Posts: 3
Member since: Aug 2011
Just like the song- It's Now or Never
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Response by leecube
over 14 years ago
Posts: 37
Member since: Mar 2010
NYCMatt...may I ask where you're getting 3.3 for 30 years fixed?? Wait...are these quoted rates for refinance only? I'm looking for new purchases.
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Response by tommy2tone
over 14 years ago
Posts: 218
Member since: Sep 2011
Yes, lower rates on all would be a tremendous boon and win-win-win for all except for perhaps mortgage services or people who invested in mortgage backed securities.
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Response by coloradorealty
over 12 years ago
Posts: 1
Member since: Aug 2011
Thanks for the comments. Our situation is a strange one. The interested party is currently renting the house after they were unable to complete the purchase more than a year ago. Their credit is now repaired and their income level is good (better than mine!). Of course the bank would need to approve them. We are somewhat underwater with the house, but not significantly so and I thought the bank might prefer this to a short sale. I know we would as we don't want to have to come up with the difference or pay taxes on the balance of a short sale. Agree that the buyers MIGHT be able to find a better rate but with stingy lending and appraisals being trashed due to foreclosures and short sales, I thought this might be a win-win in this crazy time.
I'll update if I decide to investigate further. thanks again. real life
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Except the vast majority of existing borrowers don't qualify for a refi
Rates down, inflation up, stocks bouncing down.... interesting times
buy now or be priced out forever ;)
hilarious.... the mkt is just coming to terms of the structural nature of our RE bubble...
Took 20 yrs to get us here, ain't over in 3 years... sorry no way no how.
50% off baby.... $500psf. FLMAOZzzzzzzzzz
"buy now or be priced out forever" Never heard that one before. Great comment.
The 4% mortgage rate is a tiny desperate little thumb in an enormous overflowing housing bubble dike.
"inflation up"
Bullshit.
I'm re-financing this week. I got 4.5%, 30 year fixed, no closing costs or points. Can anyone beat this?
"Except the vast majority of existing borrowers don't qualify for a refi"
I actually got a letter from Chase a few months ago telling me I qualified for a refi at a lower rate. My old mortage was with Chase. I never even asked them to do a refi. They just sent the letter on their own and paid all closing costs. I heard a lot of other banks are doing this as well.
No closing costs? You mean no origination fee, but still pay title, and all the other 3rd party costs right? i'm shopping for a refine right now
Are you taking cash out?
Mortgage broker here.
Www.esfunding.instantlender.com
lots of ppl buying little thumbs.... nice nice.....
streetsmart.... why don't you take some money out of YOUR home and buy some more RE. RE-fi now or have no more equity to ever re-fi AGAIN!!!!!!
or you can do plan 2.
Sell NOW and buy back w/o a Mortgage in 12 months.
Amazing! Watch an ape time the real estate market!
Step 1 sell today
Step 2 buy in 12 months.
So simple, even an ape can do it.
I would think you could get 4.25% in this environment and that is without points.
Do you feel the wind?
that's the properties flying off the shelf.
so if 4.5% wont get you to buy...what will?
No cash out.
"I'm re-financing this week. I got 4.5%, 30 year fixed, no closing costs or points. Can anyone beat this?"
3.3, 30-year fixed, no points, no closing costs.
Let these rates be available to ALL homeowners now, no pre-qualifications, minimal paperwork, NO points. Pass a law now! The banks will still make a profit, their rates are even lower.
This would help the American people tremendously!!!
Just like the song- It's Now or Never
NYCMatt...may I ask where you're getting 3.3 for 30 years fixed?? Wait...are these quoted rates for refinance only? I'm looking for new purchases.
Yes, lower rates on all would be a tremendous boon and win-win-win for all except for perhaps mortgage services or people who invested in mortgage backed securities.
Thanks for the comments. Our situation is a strange one. The interested party is currently renting the house after they were unable to complete the purchase more than a year ago. Their credit is now repaired and their income level is good (better than mine!). Of course the bank would need to approve them. We are somewhat underwater with the house, but not significantly so and I thought the bank might prefer this to a short sale. I know we would as we don't want to have to come up with the difference or pay taxes on the balance of a short sale. Agree that the buyers MIGHT be able to find a better rate but with stingy lending and appraisals being trashed due to foreclosures and short sales, I thought this might be a win-win in this crazy time.
I'll update if I decide to investigate further. thanks again. real life